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ferent viewpoints. For instance, when the entrepreneurs are critical about opening Estonia to foreign labour, the reason for the critical attitude may be the fact that the labour market has not been opened up sufficiently. At the same time the cultural figures and some politicians may be critical for exactly the opposite reasons. The cultural figures are characterised by their slightly cooler attitude to the opportunities for utilising financial markets and for exporting, although even they consider foreign investments in Estonian companies to be very important. If a positive attitude to the impacts of most factors included here, can be considered to be self-evident, in many countries both the majority of the people, as well as the elites are relatively critical about such factors like increased competition, people’s opportunities to work abroad and the strong role played by foreign investors in the economy. Based on this survey, it seems that this is not true of Estonia’s elite. In the questionnaire, we also asked our experts for their assessment of various aspects of Estonia’s affairs – whether the situation in one or another sphere has improved or deteriorated during the last decade, without specifying whether the respondent interprets the shift to be the result of globalisation or not (Figure 5.2.1). The critical assessments were predominantly related to only three spheres out of a total of fifteen: the demographic situation, economic equality/inequality and trust in the state authorities. Therefore, it can be stated that the assessments of the changes, which can be considered to be indirect consequences of globalisation, are also mostly positive. It is interesting to compare the above to the predictions made in 2000 by economic policymakers concerning the possible negative effects of globalisation. The list of fears was at that time topped by the departure of highly qualified labour from Estonia, by setbacks in the financial markets (primarily in the case of high-risk speculative investments), by increased differences in wealth, as well as by problems related to international crime. Damage to the natural en viron ment was not expected to be great, and the departure of less-qualified labour was not thought to be likely. The possible weakening of cultural identity was toward the bottom of the list of possible problematic shifts. Some of the fears from that time have been realised, but some, for instance the increase in international crime, luckily, have not. Actually, the departure of labour has already moved beyond just highly skilled labour. It is noteworthy that, despite the generally positive attitude toward globalisation, there is now more concern about cultural identity than there was in 2000. 5.2.2 Response patterns What would be the best measures for supporting Estonia’s ability to cope with the impacts of globalisation? We gave the respondents a list of possible measures to evaluate. 1 Table 5.2.2 shows how the answers were distributed. Figure 5.2.1 Has the situation in the given sphere improved or deteriorated during the last ten years? (% of respondents) Total PhDs Cultural figures Politicians Economic policymakers Entrepreneurs 1.5 2.0 2.5 3.0 3.5 4.0 E-governance development Extent of innovative mindset in the economy and society Personal freedoms Competitiveness of the economy Perception of security by the people Ecological situation People’s income level State of the people’s health Ethnic relations in Estonia Corruption Development of democracy Education People’s life satisfaction Trust in the state authorities Economic equality/ inequality Estonia’s demographic situation 1.5 2.0 2.5 3.0 3.5 4.0 Average on a scale of 1 to 5, where 1 = the situation has gotten a lot worse; and 5 = the situation has gotten a lot better 1 The list of means was developed in 2000 for examining the globalisation-related economic policies (authors M. Didõk and E. Terk). At that time, the situation related to banking was quite severe, and this explains why the list includes many measures that are related to the improvement of the financial sector. We decided to use the list of measures for this study in a relatively unchanged form. 198 Estonian Human Development Report 2012/2013
Table 5.2.2 Support of the different respondent groups for the measures that are necessary for coping with the impacts of globalisation (the position of the measure in the ranking is based on the percentage of supporters) Total sample, 2013 Economic policymakers, 2013 Economic policymakers, 2000 International cooperation for fighting crime 4 – 5 2 – 3 1 – 2 Stricter rules to ensure the transparency of financial institutions 7 6 1 – 2 Stronger supervision of the financial sector by the Bank of Estonia and the Financial Supervision Authority 8 7 – 8 3 – 5 Stronger industrial and technological policies 3 2 – 3 3 – 5 Rising labour quality for coping in international competition 1 1 3 – 5 International cooperation related to environmental protection 6 5 6 International cooperation to prevent money laundering and banking-related crime 10 9 – 10 7 Measures against abusing off-shore zones 12 11 8 – 9 Maintaining of Estonia’s cultural identity 2 4 8 – 9 Strengthening and better financing of the social protection system (helping people to cope with a crises) 4 – 5 7 – 8 10 Subsidising/supporting agriculture 9 12 11 Protective measures to preserve jobs in Estonia 13 – 14 13 12 Barriers to prevent unwanted immigration 13 - 14 14 * International cooperation to fight against diseases and epidemics 11 9 – 10 * *Measures indicated with a * were not included in the 2000 survey. If we compare the measures preferred by economic policymakers in 2000 with those in 2013, we see that the ones related to the financial sphere (overcoming banking problems) and fighting crime are not as topical any more. However, the importance of developing labour quality, and to a certain extent, also the development of industrial and technology policies, and the social protection system, as well as the preservation of cultural identity has increased. In the subsequent interpretation of measures, we have distributed the individual measures into three groups: 1) protectionist measures – measures to protect jobs, farmers’ subsidies, immigration barriers, also the possible reintroduction of the national currency and departure from the euro area; 2) measures to consolidate the economic environment; 3) measures related to development activities and international cooperation (see Table 5.2.3). We did not include the preservation of cultural identity and the strengthening of the social protection system as more universal aspirations in this classification; therefore in the following table, the columns showing the percentages of the supported measures do not add up to 100 percent. We see that support for the protectionist measures was quite limited, as was also true in the 2000 survey. The measures related to economic development and international cooperation were mentioned most frequently by all the expert groups, whereas especially noteworthy was the strong support to these from the economic policymakers. Compared to the 2000 survey, the importance of consolidating the economic environment has decreased somewhat, in the opinion of the economic policymakers. Table 5.2.3 The support of the elite groups for the different types of measures (support for the measures of the corresponding group among all the measures supported by the given elite group (%)) Entrepreneurs Above, we placed each of the individual measures in one of three groups, based on what its main contribution seemed to be from the survey compilers’ viewpoints. However, in reality, the respondents’ views may differ somewhat from this grouping. In order to understand the perception of the measures and their connection by respondents we used cluster analysis 2 . Based on data clustering the measures were concentrated in clusters as to their “proximity” or “remoteness”. In the case of each cluster, we can speak about a “cluster forming measures”, around which the others converge. It is also possible to determine, which measures selected by Economic policymakers Politicians Cultural figures PhDs Economic policymakers, 2000 Protectionist measures 10 4 14 11 18 5 Measures to consolidate the economic environment Development activities and international cooperation 24 27 22 24 21 42 48 52 44 42 40 47 2 In the analysis, we used k-means cluster analysis. Estonian Human Development Report 2012/2013 199
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ESTONIAN HUMAN DEVELOPMENT REPORT 2
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Table of Contents 1 Human Capital /
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Dear Reader Since the moment when E
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1Human Capital Estonian Human Devel
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the HDI’s content has also been h
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Figure 1.1.1 The human development
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Figure 1.1.7 The income sub-index:
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The results of the Princeton Projec
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the hypothetical generation. The to
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Figure 1.2.3 Life expectancy. Eston
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Table 1.2.2 also presents the most
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The new trends that are appearing i
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Figure 1.2.8 Components of populati
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New features were introduced into E
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Initiation of Voluntary Birth Contr
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Table 1.3.1 Best-known educational
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(OECD 2012b). Therefore a certain r
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The reciprocal dependence of the pr
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Figure 1.3.8 Percentage of students
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Table 1.3.4 The quality of educatio
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1.4 Health Raul-Allan Kiivet Change
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Table 1.4.1 Usage of prescription m
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allude to the fact that approximate
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promote healthy lifestyles among th
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Figure 1.5.1 The World Values Surve
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Table 1.5.2 Estonia’s participati
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Figure 1.5.3 The percentage of the
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Figure 1.5.5 Percentage of the Esto
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The fact that Estonia’s position
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Summary Mati Heidmets The global vi
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2People and Society Estonian Human
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Table 2.1.1 Structure of the Bertel
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tioning market economies (15 states
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2.2 Freedom and democracy Martin M
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Table 2.2.1 Democracy indicators Po
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Figure 2.2.2 The distribution of th
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would be something that none of the
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political participation are general
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strongest, while a very small perce
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is concerned, Estonia is one of the
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Figure 2.4.2 Average circulation of
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2.5 Corruption Jüri Saar In accord
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Lithuania, 61%; and in Russia, 69%.
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2.6.2 Intentional homicides in Esto
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crime. And thirdly, there was a wis
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References 1. Ahven, A. & Tabur, L.
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states included in the EU Kids Onli
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2.8 Public assessments of the state
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Figure 2.8.4 Changes releated to tr
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of the state’s development are en
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Table 2.9.1 The positions of Estoni
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3. IEP (2011). Structures of Peace.
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3Welfare and the Quality of Life Es
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choices made, not what people say t
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Figure 3.1.5 Public social spending
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tion agreed upon the social contrac
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References 1. Aidukaite, J. (2006).
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hand, to the “inequality of acces
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and explanations of the extent of i
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5- much more than I deserve. Some d
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people in Estonia consider the inco
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Table 3.3.1 Experienced Well-Being
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at about 70%. In Latvia and Lithuan
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sign. It seems that the usual view
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3.4 Quality of life Anu Toots 3.4.1
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a uniform composite indicator has n
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3.4.6 The components of life qualit
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Figure 3.4.4c Perceived quality of
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Figure 3.4.5 Changes in the depriva
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3.5 Environment dimension of well-b
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Figure 3.5.1.b Estonia’s position
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3.5.4 Energy intensity The energy i
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productivity, which is defined as t
Page 149 and 150: perceive themselves as worse off th
Page 151 and 152: 4The Economy Estonian Human Develop
Page 153 and 154: vide a valuable connection for maki
Page 155 and 156: Figure 4.1.3 Components of economic
Page 157 and 158: ule of law, the sub-indicators for
Page 159 and 160: References 1. Acemoglu, D.; Robinso
Page 161 and 162: Development Report employs generali
Page 163 and 164: and pasture land, and this was capi
Page 165 and 166: Basing the total and net savings re
Page 167 and 168: 4.3 Labour market Reelika Leetmaa,
Page 169 and 170: The problems include the very limit
Page 171 and 172: • Expenditures for active labour
Page 173 and 174: who lose their jobs. These ensure i
Page 175 and 176: 4.4 Productivity and the economic s
Page 177 and 178: labour costs at the company level r
Page 179 and 180: Table 4.4.4 Comparison of the produ
Page 181 and 182: Figure 4.4.1 Annual average increas
Page 183 and 184: 4.5 Innovation Erik Terk, Katrin M
Page 185 and 186: Table 4.5.2 Comparison of innovatio
Page 187 and 188: Table 4.5.4 Comparison of the indic
Page 189 and 190: in order to make the R&D potential
Page 191 and 192: It is characteristic of the South K
Page 193 and 194: mechanisms for increasing their sta
Page 195 and 196: Globalisation and Policy Patterns 5
Page 197 and 198: When Estonia regained its independe
Page 199: 5.2 The impacts of globalisation an
Page 203 and 204: 5.3 Development policies Erik Terk,
Page 205 and 206: • C -the “Estonia-centred” su
Page 207 and 208: Figure 5.4.1 Support for the possib
Page 209: Summary Erik Terk Estonia is part o
Page 212 and 213: ehavioural patterns. Therefore, it
Page 214 and 215: EDR 2012/2013 authors Clemens Buche
Page 216 and 217: EDR 2012/2013 authors Alari Purju i
Page 218: Editor-in-Chief: Mati Heidmets Prod
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